diff --git a/CHANGELOG.md b/CHANGELOG.md
index d05083b06b..99c1a56562 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -27,6 +27,8 @@
     FIXES [#3035](https://github.com/microsoft/Microsoft365DSC/issues/3035)
   * Deprecated all FontName properties, since these are no longer configurable.
     FIXES [#3035](https://github.com/microsoft/Microsoft365DSC/issues/3035)
+  * Fixed the collection of new and set parameters to ensure the correct values are passed to the New/Set cmdlets.
+    FIXES [#3050](https://github.com/microsoft/Microsoft365DSC/issues/3050)
 * MISC
   * Added QA test that checks for existence of an example for each resource.
 * DRG
diff --git a/Modules/Microsoft365DSC/DSCResources/MSFT_SCSensitivityLabel/MSFT_SCSensitivityLabel.psm1 b/Modules/Microsoft365DSC/DSCResources/MSFT_SCSensitivityLabel/MSFT_SCSensitivityLabel.psm1
index 4ada9240ec..7f1766f797 100644
--- a/Modules/Microsoft365DSC/DSCResources/MSFT_SCSensitivityLabel/MSFT_SCSensitivityLabel.psm1
+++ b/Modules/Microsoft365DSC/DSCResources/MSFT_SCSensitivityLabel/MSFT_SCSensitivityLabel.psm1
@@ -837,11 +837,20 @@ function Set-TargetResource
             $CreationParams.Remove('SiteAndGroupExternalSharingControlType')
         }
 
-        $CreationParams.Remove('Credential') | Out-Null
-        $CreationParams.Remove('Ensure') | Out-Null
         $CreationParams.Remove('Priority') | Out-Null
         $CreationParams.Remove('Disabled') | Out-Null
 
+        # Remove authentication parameters
+        $CreationParams.Remove('Ensure') | Out-Null
+        $CreationParams.Remove('Credential') | Out-Null
+        $CreationParams.Remove('ApplicationId') | Out-Null
+        $CreationParams.Remove('TenantId') | Out-Null
+        $CreationParams.Remove('CertificatePath') | Out-Null
+        $CreationParams.Remove('CertificatePassword') | Out-Null
+        $CreationParams.Remove('CertificateThumbprint') | Out-Null
+        $CreationParams.Remove('ManagedIdentity') | Out-Null
+        $CreationParams.Remove('ApplicationSecret') | Out-Null
+
         try
         {
             Write-Verbose -Message "Creating Label {$Name}"
@@ -878,11 +887,20 @@ function Set-TargetResource
         }
 
         #Remove unused parameters for Set-Label cmdlet
-        $SetParams.Remove('Credential') | Out-Null
-        $SetParams.Remove('Ensure') | Out-Null
         $SetParams.Remove('Name') | Out-Null
         $SetParams.Remove('Disabled') | Out-Null
 
+        # Remove authentication parameters
+        $SetParams.Remove('Ensure') | Out-Null
+        $SetParams.Remove('Credential') | Out-Null
+        $SetParams.Remove('ApplicationId') | Out-Null
+        $SetParams.Remove('TenantId') | Out-Null
+        $SetParams.Remove('CertificatePath') | Out-Null
+        $SetParams.Remove('CertificatePassword') | Out-Null
+        $SetParams.Remove('CertificateThumbprint') | Out-Null
+        $SetParams.Remove('ManagedIdentity') | Out-Null
+        $SetParams.Remove('ApplicationSecret') | Out-Null
+
         try
         {
             Set-Label @SetParams -Identity $Name